Quote:
Originally Posted by Trump
Hardly worth writing about, it's about eight months worth at current global consumption rates.
It's a stock boosting announcement, nothing else.
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You're missing the point here, the USA is one of OPEC's biggest markets but in recent years,
the US has been reducing dependence on OPEC by finding alternate suppliers in Canada & Sth America.
The whole point is that yes, Shale oil is too expensive to mine at the moment but this signals to OPEC
that if they lift the price too much, those deposits come into play, effectively capping OPEC's prices
OPEC has managed to lift prices this year form $27/barrel to $44/barrel with intentions of
drying up the excess oil stock and going to $65/barrel or more. At around $70/ barrel,
all those Shale Oil Reserves become economically viable.
That's the long game the US is playing, to never again be held hostage by OPEC's oil pricing.